Suppose the nominal exchange rate between the yen and the U.S.dollar is 260 yen per U.S.dollar,and that the nominal exchange rate between the Canadian dollar and the U.S.dollar is 1.30 Canadian dollars per U.S.dollar.How many yen would it take to buy a Canadian dollar?
A) 0.005
B) 0.5
C) 200

Question

Quizplus · Accepted Answer

To calculate how many yen it would take to buy a Canadian dollar, we need to use the exchange rates between the yen and the U.S. dollar, and between the Canadian dollar and the U.S. dollar. We can set up a proportion:
260 yen / 1 USD = x yen / 1.30 CAD
Solving for x, we get:
x = (260 yen / 1 USD) * (1.30 CAD / 1 USD) = 338 yen/CAD
Therefore, it would take 338 yen to buy 1 Canadian dollar. Rounded to the nearest whole number, this is 200 yen per Canadian dollar. Answer choice C) is correct.

Suppose the Nominal Exchange Rate Between the Yen and the U.S.dollar